Smartphone market at an all-time high in India; pandemic affects cheaper phones
While the India smartphone market registered double-digit growth in the third quarter this year and reached highest-ever levels with 14 per cent (on-year) growth, the overall feature phone grew marginally, primarily because consumers at the bottom of the pyramid continue to be sharply affected by the pandemic, a new report said on Thursday.
According to the latest research from CMR "Mobile Handset Market Review Report for Q3 2020," Samsung emerged as the top smartphone brand as well as and top mobile brand in the September quarter.
From affordable to mid-tier to premium segment -- Samsung posted a strong YoY growth across price tiers.
"In Q3 2020, the smartphone market offset the ongoing pandemic-related challenges in H1 2020 and grew handsomely. Across price bands, smartphone brands unveiled competitively priced strong offerings," said Amit Sharma, Analyst-Industry Intelligence Group (IIG), CMR.
"We estimate the smartphone demand to outstrip other product categories during the festive climate, despite cautious discretionary spending being low".
The smartphone market grew on the back of attractive pre-festive season launches, aggressive marketing, and attractive promotions and discounts by all the leading smartphone brands in the run-up to the festive season.
"Consumers from aspirational India, including first-time ecommerce shoppers, looked at shopping online, aided by the option to shop in vernacular languages. We anticipate online to drive over 70 per cent of the overall sales this festive season," said Shipra Sinha, Analyst-Industry Intelligence Group (IIG), CMR.
The 5G smartphone segment grew significantly from a small base, by almost 500 per cent (quarter-on-quarter) with the launch of OnePlus Nord.
Xiaomi dropped down to second position with its shipments declining by 5 per cent (YoY) on account of Covid-19 restrictions and supply chain issues.
Vivo stood at the third position and its shipments grew by 7 per cent (YoY) driven by its V and Y series.
Realme shipments grew by 13 per cent YoY mostly driven by the realme C series, including the realme C11, realme C6, realme 5i and realme C3, along with newly launched Realme 7 contributing 50 per cent of its sales.
itel ranked number one in the feature phone segment.
According to CMR, the smartphone market in the second half will potentially grow at 15 per cent (YoY), with Q4 2020 witnessing a 14 per cent (YoY) growth.